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Assume 100 units were completed and transferred out during the period. The 140 units left in ending WIP are 10​% complete with respect to conversion costs. The total equivalent units for conversion costs would be ________.a. 100.b. 140.c. 108.d. 8.e. None of the above.

Respuesta :

The answer is (e) none of the above

Explanation:

The formula for calculating the  total equivalent units for conversion costs =

A+B*C

A = units transferred out to the next department/finished goods

B = units in closing work in process

C = percentage of completion with respect to the relevant cost component

Given that

A=100

B=140

C=10/100

Total equivalent units for a cost component =100+140*10/100

=>100+140*1/10

=>100+14=114

So ,the answer of the above question is (e) None of these

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